APICS Exam CPIM-8.0 Topic 1 Question 4 Discussion

Actual exam question for APICS's CPIM-8.0 exam

Question #: 4
Topic #: 1

A company decided not to pursue a business opportunity In a foreign market due to political Instability and currency fluctuations. Which risk control strategy did this business utilize?

AMitigation

BPrevention

CRecovery

DWait and see

Show Suggested Answer

Suggested Answer: B

Prevention is a risk control strategy that involves avoiding or eliminating the sources of risk. By deciding not to pursue a business opportunity in a foreign market due to political instability and currency fluctuations, the company prevented the potential losses or disruptions that could arise from these factors. Mitigation is a risk control strategy that involves reducing the impact or likelihood of risk. Recovery is a risk control strategy that involves restoring normal operations after a risk event occurs. Wait and see is a risk control strategy that involves monitoring the risk situation and taking action only when necessary.Reference:

CPIM Part 2 Learning System, Module 1: Supply Chain Strategy, Section 1.5: Risk Management

CPIM Part 2 Learning System, Module 4: Execution and Control of Operations, Section 4.3: Risk Management

by Ilene at Mar 10, 2025, 02:08 AM

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Yuette

4 months ago

I think they should have chosen recovery instead.

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Rodolfo

4 months ago

C) Recovery? Haha, good one! You can't recover from a business opportunity you never took in the first place. Definitely a mitigation strategy here.

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Walton

4 months ago

D) Wait and see

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Yuonne

4 months ago

C) Recovery

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Tennie

4 months ago

B) Prevention

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Erick

4 months ago

A) Mitigation

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Jesusita

4 months ago

B) Prevention? Nah, man. They didn't try to stop the political instability or currency fluctuations. They just decided not to engage with that market, which is more like mitigation.

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Lavera

4 months ago

D) Wait and see? Really? That's like playing a game of Russian roulette with your business. Good call on avoiding that risky foreign market.

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Julio

3 months ago

B) Prevention

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Malinda

3 months ago

Definitely, it's better to be safe than sorry.

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Octavio

3 months ago

A) Mitigation

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Geoffrey

3 months ago

Avoiding the risky market was a smart move.

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Donte

3 months ago

D) Wait and see

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Carmela

4 months ago

C) Recovery

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Janessa

4 months ago

B) Prevention

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Glory

4 months ago

A) Mitigation

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Josephine

4 months ago

I agree with Howard, mitigation makes more sense in this situation.

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Howard

4 months ago

I disagree, I believe they utilized mitigation.

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Allene

5 months ago

I think the answer is A) Mitigation. The company weighed the political and currency risks and decided to avoid the opportunity, which is a risk mitigation strategy.

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Serina

4 months ago

It's definitely A) Mitigation. They were proactive in addressing the risks before they became a problem.

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Abraham

4 months ago

I agree, A) Mitigation is the correct answer. They took steps to reduce the impact of potential risks.

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Mariann

5 months ago

I think the company used prevention.

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